South America Legal Marijuana Market Research Report By Application (Recreational Use, Medicinal Use, Industrial Use, Cosmetics, Food and Beverages), By Product Type (Dried Flowers, Concentrates, Edibles, Oils, Tinctures), By Distribution Channel (Online Retail, Physical Stores, Dispensaries, Pharmacies, Direct Sales), By End Use (Personal Use, Commercial Use, Research, Development) and By Regional (Brazil, Mexico, Argentina, Rest of South America) - Forecast to 2035

South America Legal Marijuana Market Overview

As per MRFR analysis, the South America Legal Marijuana Market Size was estimated at 868 (USD Million) in 2023. The South America Legal Marijuana Market Industry is expected to grow from 950(USD Million) in 2024 to 2,500 (USD Million) by 2035. The South America Legal Marijuana Market CAGR (growth rate) is expected to be around 9.195% during the forecast period (2025 - 2035)

Key South America Legal Marijuana Market Trends Highlighted

In South America, the legal marijuana market is experiencing significant growth driven by changing regulations and increased acceptance of cannabis use for medical and recreational purposes. A key market driver is the shifting legal landscape, as several countries in the region, like Uruguay and Colombia, have already legalized marijuana, paving the way for commercial cultivation and distribution. 

This progressive legislative environment is creating opportunities for businesses to enter and expand within the market, as governments work to regulate and control the industry effectively. The interest in medical marijuana is particularly notable, as South American countries are exploring its therapeutic benefits, leading to a surge in research and development in this sector.Recent trends indicate an increase in consumer awareness about the benefits of cannabis, both medically and recreationally, which is resulting in a growing acceptance within society. 

Social attitudes towards marijuana are changing, influenced by global trends and local advocacy, creating a more favorable environment for regulations to evolve. As countries within the region continue to develop their frameworks for the legal marijuana market, opportunities to capture emerging niches such as CBD products, edibles, and wellness items are becoming apparent. 

Additionally, the rise of local startups focusing on sustainable practices and organic cultivation can tap into a growing consumer preference for sustainable products, further driving market growth.Collaborations between governments, medical professionals, and businesses can also enhance research and promote responsible usage, thereby shaping the future trajectory of the market in South America.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

South America Legal Marijuana Market Drivers

Growing Legalization Trends Across South America

One of the main factors propelling the South America legal marijuana market industry is the region's tendency toward legalizing marijuana for both medicinal and recreational use. Uruguay was one of the first countries to legalize marijuana, and current initiatives in countries like Chile and Colombia are following suit. Regional government figures show that the number of legal marijuana licenses issued has significantly increased over the past five years, suggesting that the business is growing. 

For example, Colombia has granted over 1,000 licenses for the cannabis sector, with the goal of promoting both domestic and foreign exports. The Colombian Ministry of Health and other authorities are pushing for more regulatory frameworks, which emphasize the sector's potential for exponential expansion. Legalization boosts local economies by creating jobs and generating revenue, in addition to making the environment safer for customers. This paradigm shift in South American laws is encouraging for the South America legal marijuana market's future expansion.

Increased Acceptance for Medical Use of Cannabis

In South America, the acceptance of marijuana for medical use is growing rapidly, thereby driving the growth of the South America Legal Marijuana Market Industry. For instance, Brazil has recently expanded its regulations to allow cannabis-based treatments for certain medical conditions, and statistical data indicates that approximately 6.2 million Brazilians could benefit from medical cannabis, according to research conducted by the Brazilian Society of Clinical Oncology.With organizations such as the Argentine Federation of Medical Cannabis advocating for patient rights and improved medical accessibility, it's expected that the market will see an upward trajectory as more patients seek alternative treatments.

Expansion in Cannabinoid Research and Development

Research and Development (R&D) in cannabinoid applications is gathering momentum in South America and is a pivotal driver for the South America Legal Marijuana Market Industry. Reports from national research institutions and universities indicate a significant increase in funded research projects aimed at discovering novel cannabinoid benefits, including pain management and anti-inflammatory effects. Specifically, Argentina has seen a surge in R&D grants focused on cannabis, with at least 25 ongoing projects funded over the past year.

Institutions like the National University of San Martn play a crucial role in fostering innovative approaches in cannabinoid exploration, ensuring that scientific validation supports market growth in various sectors.

Rising Demand from the Recreational Market

The recreational use of marijuana is gaining traction among younger demographics in South America, providing a crucial stimulus for the South America Legal Marijuana Market Industry. Surveys in countries like Chile indicated that around 21% of the population aged 18 to 34 expressed interest in using cannabis for recreational purposes, reflecting changing social norms. 

Growing social acceptance, coupled with public forums where users express favorable viewpoints, further strengthens the case for market expansion.The role of established organizations engaged in cannabis advocacy has also increased awareness and education, paving the way for a booming recreational market that could contribute significantly to overall market value in the near future.

South America Legal Marijuana Market Segment Insights

Legal Marijuana Market Application Insights

The Application segment of the South America Legal Marijuana Market showcases a diverse landscape that significantly contributes to the overall growth and revenue generation within the industry. As the market landscape evolves, recreational use stands out as a dominant force, driven by an increasing social acceptance and the trend of legalization across various countries in South America. This segment is catered predominantly to adult consumers seeking leisure and relaxation, which has attracted significant investments and innovations in product offerings, ranging from edibles to smoking products. The medicinal use of marijuana also plays an essential role in the market, propelled by growing recognition of its therapeutic benefits for various health conditions. 

This segment includes products aimed at pain relief, anxiety management, and treatment for chronic illnesses, making it a crucial area of focus for healthcare professionals and researchers. Furthermore, the industrial use of cannabis presents unique opportunities, as it encompasses applications in textiles, construction, and biofuels, reflecting a shift towards sustainable practices within industries. The regulatory environment in countries like Uruguay and Colombia fosters advancements in this area, encouraging local industries to explore hemp-derived materials that contribute to economic growth and innovation. 

Additionally, the cosmetics sector is emerging as a notable niche, with hemp oil and CBD-infused products gaining traction for their moisturizing and soothing properties, appealing especially to consumers who prioritize natural ingredients in their beauty routines. Lastly, the food and beverages segment is witnessing innovations as manufacturers create infused products that cater to a growing consumer base interested in functional foods and beverages, driven by health consciousness and curiosity about cannabis. Overall, the Application segment of the South America Legal Marijuana Market reflects a dynamic range of growth potential across its various uses, supported by changing consumer preferences and regulatory advancements.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Legal Marijuana Market Product Type Insights

The South America Legal Marijuana Market exhibits a diverse range of product types, contributing significantly to market dynamics. Dried Flowers remain a foundational product, often favored for their versatility and traditional use among consumers, highlighting the region's deep cultural connections to natural cannabis forms. Concentrates have gained traction for their high potency and are increasingly preferred by experienced users, reflecting a trend towards more sophisticated consumption methods. Edibles are also emerging as a popular choice due to their discreet nature and diverse offerings, appealing to a wider audience, including those seeking alternative therapeutic effects.

Oils and Tinctures are important for their ease of use and precise dosing, catering to medical users who value convenience and effectiveness. As consumer preferences continue to evolve, each product type presents unique opportunities for growth and innovation within the South America Legal Marijuana Market. The ongoing legalization and acceptance in various countries further enhance the potential for these segments to thrive, thereby driving overall market evolution and consumer engagement.

Legal Marijuana Market Distribution Channel Insights

The Distribution Channel segment of the South America Legal Marijuana Market is pivotal for the accessibility and growth of cannabis products in the region. With the increasing acceptance of legal marijuana, various distribution methods have emerged, catering to diverse consumer preferences. Online Retail has gained substantial traction, allowing for convenient access and a wider array of products, while Physical Stores provide a tactile experience for consumers who prefer to inspect products prior to purchase. Dispensaries remain central to the market, operating as specialized outlets dedicated to cannabis products, thereby enhancing customer knowledge and experience.

Pharmacies are also starting to recognize the demand for medical cannabis, expanding their offerings to include these products in response to greater acceptance of medicinal marijuana among patients. Direct Sales allow producers to establish closer relationships with consumers, fostering trust and providing detailed product information directly from the source. The dynamic interactions among these distribution channels greatly influence South America Legal Marijuana Market growth, driven by evolving regulations and consumer behavior trends that prioritize accessibility, quality, and compliance.As the market continues to expand, these varied distribution channels hold significant importance in shaping the overall consumer experience and market dynamics.

Legal Marijuana Market End Use Insights

The South America Legal Marijuana Market encompasses various end-use categories, each contributing significantly to the overall landscape. Personal Use has emerged as a crucial segment, with increasing acceptance and changing social attitudes towards the recreational use of marijuana. This trend is prominent in countries like Uruguay, which led the way in legalization, influencing public perception across the region. Commercial Use is another vital segment, driven by the growing demand for cannabis-based products in sectors such as wellness, beauty, and food.This diversification of products holds promise for market growth, as more companies enter the space seeking to capitalize on a burgeoning consumer base. 

In addition, the Research and Development segment plays an essential role in advancing cannabis science, focusing on medical applications and therapeutic benefits, which can enhance healthcare options in South American countries facing various health challenges. By broadening its scientific and medical understanding, this segment aims to transform traditional practices and improve industry standards.The interplay between these segments reflects a dynamic market, driven by evolving consumer preferences, regulatory landscapes, and the ongoing exploration of marijuana's potential benefits. With these factors at play, the South America Legal Marijuana Market is poised for notable advancement in the coming years.

South America Legal Marijuana Market Key Players and Competitive Insights

The South America Legal Marijuana Market is witnessing a significant shift, influenced by changing regulations and growing acceptance of cannabis for both medicinal and recreational use. As various countries in this region begin reforming their marijuana laws, a dynamic, competitive landscape is emerging. Companies are increasingly looking to capitalize on the burgeoning demand for cannabis products, including oils, edibles, and raw flower. The market is marked by not only local players but also the entry of international firms looking to establish a foothold in this promising environment. 

Understanding the competitive insights within this sector, including market share, emerging trends, and strategic initiatives, is crucial for businesses seeking to thrive amidst a rapidly evolving regulatory framework and consumer landscape.Canopy Growth holds a notable position in the South America Legal Marijuana Market, leveraging its brand recognition and extensive experience in the global cannabis industry. The company has strategically focused on expanding its presence across key markets within the region, forming partnerships with local distributors and stakeholders to facilitate the entry of their diverse product offerings. 

Canopy Growth's strength lies in its robust supply chain and commitment to maintaining high-quality standards, which have effectively established trust among consumers and regulators alike. The company also benefits from significant financial backing, enabling it to invest in research, development, and marketing initiatives tailored for the South American demographic, which enhances its competitive edge in the legal marijuana space.MariMed has been making strides in the South America Legal Marijuana Market by focusing on the cultivation and production of high-quality cannabis products. 

With a comprehensive portfolio that includes an array of products such as edibles, oils, and wellness-focused items, MariMed has positioned itself to meet the varying demands of consumers in this region. The company’s strength hinges on its strategic partnerships with local businesses, which have facilitated smoother operations and distribution channels. Furthermore, MariMed's commitment to sustainability and social responsibility aligns well with the growing consumer preference for ethically produced products. 

Recent mergers and acquisitions within the South American market reflect MariMed's aggressive expansion strategy, enabling it to strengthen its market presence and enhance its product offerings while appealing to an increasingly diverse customer base in the legal marijuana sector.

Key Companies in the South America Legal Marijuana Market Include

• Canopy Growth


• MariMed


• MedMen Enterprises


• True Leaf Medicine


• Tilray Brands


• Columbia Care


• Aurora Cannabis


• Greenheart Farms


• PharmaCielo


• Wayland Group


• Khiron Life Sciences


• Emmac Life Sciences


• Verano Holdings

South America Legal Marijuana Market Industry Developments

In South America, the legal marijuana market has seen significant developments recently. Notably, in October 2023, Canopy Growth announced strategic plans to expand its cultivation operations in Colombia, capitalizing on the region's favorable climate. Meanwhile, Tilray Brands continues to push forward in Brazil, enhancing its distribution channels for pharmaceutical-grade cannabis products. In September 2023, Aurora Cannabis reported on its ongoing partnership with local entities to support sustainable farming practices in the region, emphasizing its commitment to environmental responsibility. 

With the increasing legalization of marijuana for medical use across various South American countries, including Argentina and Uruguay, market valuations for companies such as True Leaf Medicine and PharmaCielo have surged, highlighting a growing acceptance and demand for cannabis products. In terms of mergers and acquisitions, Verano Holdings announced its acquisition of a stake in a Brazilian cannabis venture in June 2023, reinforcing its influence in the local market. The sector's growth reflects shifting public perception and regulatory frameworks that encourage investment and innovation within the South American legal marijuana landscape.

South America Legal Marijuana Market Segmentation Insights

Legal Marijuana Market Application Outlook

• Recreational Use


• Medicinal Use


• Industrial Use


• Cosmetics


• Food and Beverages

Legal Marijuana Market Product Type Outlook

• Dried Flowers


• Concentrates


• Edibles


• Oils


• Tinctures

Legal Marijuana Market Distribution Channel Outlook

• Online Retail


• Physical Stores


• Dispensaries


• Pharmacies


• Direct Sales

Legal Marijuana Market End Use Outlook

• Personal Use


• Commercial Use


• Research


• Development

Legal Marijuana Market Regional Outlook

• Brazil


• Mexico


• Argentina


• Rest of South America

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	868.0(USD Million)
MARKET SIZE 2024	950.0(USD Million)
MARKET SIZE 2035	2500.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	9.195% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Million
KEY COMPANIES PROFILED	Canopy Growth, MariMed, MedMen Enterprises, True Leaf Medicine, Tilray Brands, Columbia Care, Aurora Cannabis, Greenheart Farms, PharmaCielo, Wayland Group, Khiron Life Sciences, Emmac Life Sciences, Verano Holdings
SEGMENTS COVERED	Application, Product Type, Distribution Channel, End Use, Regional
KEY MARKET OPPORTUNITIES	Growing medical cannabis demand, E-commerce expansion potential, CBD product innovation, Increasing tourism for cannabis, Regulatory reform advancements
KEY MARKET DYNAMICS	Regulatory environment evolution, Increasing consumer acceptance, Investment opportunities growth, Medical marijuana expansion, CBD product demand rise
COUNTRIES COVERED	Brazil, Mexico, Argentina, Rest of South America